Wesdome Announces 2020 Fourth Quarter and Full Year Financial Results

 
Download as PDF Published on: March 10, 2021

TORONTO, March 10, 2021 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) (“Q4 2020”) and full year 2020 financial results.   The Company’s full consolidated financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.wesdome.com. All figures are stated in Canadian dollars unless otherwise noted.

Key highlights of 2020:

  • Production of 90,278 ounces.
  • Company free cash flow1 generation of $29.0 million, net of investing $40.5 million into the Kiena Complex, an increase of 332% over 2019.
  • Net income increased by 24% from 2019 and adjusted net income1 increased by 31% from 2019.
  • Operating cash flow increased by 44% from 2019.
  • Increased Eagle River Reserves by 5% net of 93,132 ounces of depletion.
  • Increased Eagle River inferred Resources by 22%.
  • Kiena Mine Complex Mineral Resources total 796,000 ounces of indicated and 656,000 ounces inferred.
  • Inferred Resources in the Kiena Deep A Zones of 120,400 ounces.
  • Processed a portion of the bulk sample from Kiena generating $3.6 million.
  1. Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

Mr. Duncan Middlemiss, President and CEO commented, “2020 was a unique, and at times challenging year as we were faced with the ongoing COVID-19 pandemic. First and foremost, I am very pleased to report that none of our sites or offices had any reported cases of the COVID-19 virus. Despite having to operate both sites at reduced capacities in order to protect our employees, we were able to achieve a number of important milestones this year, such as achieving our production guidance at Eagle River, increasing free cash flow by $22.3 million over 2019, and advancing the Kiena Complex through to mining and milling of a bulk sample.

Loss of operational efficiencies due to the evolving pandemic did have an impact on costs, and the volume of diamond drilling. Both operating and AISC costs came in higher than guidance as a result of these measures and the inherent inefficiencies of social distancing in underground operations. We have taken the continuing pandemic into account when forecasting our 2021 cost guidance. Production guidance for the year is 92,000 – 105,000 ounces with grades expecting to average between 13.0 and 15.0 g/t.

At the Eagle River mine, we completed 50,000 metres of drilling, replaced 93,132 ounces of depletion, and added an additional 30,000 ounces. As well, we increased the inferred resources by 22%, while slightly increasing grade to 12.5 g/t. Current mineral reserves at Eagle River as of December 31, 2020 are 581,000 ounces of gold from 1.4 Mt at an overall grade of 13.4 g/t Au; as compared to the mineral reserves as of December 31, 2019 of 1.2 Mt at a grade of 14.4 g/t Au containing 550,000 ounces of gold. In 2021, we plan to conduct significantly more drilling with metres budgeted to range between 164,000 and 174,000 metres. This is split out as 60,000 – 70,000 metres of underground exploration drilling, 50,000 metres of underground definition drilling, and 54,000 metres of surface drilling. The exploration drilling will focus on the 300 E Zone, Falcon 7 Zone and west of 7 Zone, and east of currently mined areas in the central area of the mine diorite.

At Kiena, while we were not able to generate the planned volume of drilling due to the Quebec government mandated shut down of operations and the ongoing effects of regional quarantines, we were still able to convert a large portion of A Zone inferred resources to indicated ounces, which has been used as the basis for our PFS, on track to be published in Q2 2021. We expect to be in a position to make a restart decision shortly thereafter which would set us on a path in a short timeframe to Wesdome realizing a second producing asset. We expect to have our final reconciliation of the bulk sample in the near term and early indications are very positive in terms of grades and tonnes. We are also guiding first production for the Kiena mine this year of 15,000 – 25,000 ounces.”

Operating and financial highlights of the full year 2020 results include:

  • Gold production of 90,278 ounces from the Eagle River Complex (2019: 91,688 ounces):
    • Eagle River Underground 196,441 tonnes at a head grade of 14.2 grams per tonne (“g/t”) Au for 87,560 ounces produced (2019: 88,617 ounces).
    • Mishi Open Pit 39,856 tonnes at a head grade of 2.7 g/t Au for 2,718 ounces produced (2019: 3,072 ounces).

  • Revenue of $215.5 million (2019: $164.0 million) from 91,229 ounces of gold sold at an average sales price of $2,360/oz (2019: 88,423 ounces at an average price of $1,853/oz).

  • Cash costs1 of $1,053/oz or US$785/oz (2019: $825/oz or US$621/oz).

  • All-in sustaining costs1 (“AISC”) of $1,396/oz or US$1,040/oz (2019: $1,293/oz or US$975/oz).

  • Earned mine profit1 of $119.3 million (2019 - $90.9 million).

  • Operating cash flow of $102.3 million or $0.74 per share1 (2019: $71.2 million or $0.52 per share).

  • Free cash flow1 of $29.0 million or $0.21 per share1 (2019: $6.7 million or $0.05 per share).

  • Net income of $50.7 million or $0.36 per share (2019: $40.9 million or $0.30 per share).
  • Adjusted net income1 of $50.7 million or $0.36 per share (2019: $38.6 million or $0.28 per share).
  • Earnings before interest, taxes and depreciation and amortization (“EBITDA”) for 2020 of $102.3 million (2019: $80.7 million).
  • Cash position at the end of the year of $63.5 million.

Operating and financial highlights of Q4 2020 results include:

  • Eagle River Complex gold production of 20,006 ounces (Q4 2019: 21,332 ozs).
    • Eagle River Underground 53,551 tonnes at a head grade of 11.7 g/t Au for 19,667 ounces produced (Q4 2019: 20,894 ounces).
    • Mishi Open Pit 3,555 tonnes at a head grade of 3.5 g/t Au for 339 ounces produced (Q4 2019: 438 ounces).
    • Q4 production was negatively impacted by mechanical downtime associated with the cone crusher in the mill and underground geotechnical challenges affecting the grade performance in one stope.

  • 19,889 gold ounces sold (Q4 2019: 22,100 ozs).

  • Cash costs1 of $1,162/oz (US$892/oz) (Q4 2019: $786/oz or US$595/oz).

  • AISC1 of $1,567/oz or US$1,203/oz (Q4 2019: $1,305/oz or US$988/oz).

  • Earned mine profit1 of $25.2 million (Q4 2019: $25.8 million).

  • Operating cash flow of $12.9 million or $0.09 per share1 (Q4 2019: $15.9 million or $0.12 per share).

  • Free cash outflow1 of $8.8 million or $(0.06) per share (Q4 2019: free cash outflow of $3.2 million or $(0.02) per share).

  • Net income1 of $8.5 million or $0.06 per share (Q4 2019: $12.1 million or $0.09 per share).

  1. Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

EAGLE RIVER COMPLEX RESERVES AND RESOURCES

MINERAL RESERVES – EAGLE RIVER (see notes)December 31, 2020December 31, 2019
  Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
        
Eagle RiverProven37012.6150,00033115.5165,000
 Probable98213.7431,00085514.0385,000
 Proven + Probable1,35213.4581,0001,18614.4550,000
        

*Reported at 5.3 g/t Au cut off

MINERAL RESERVES – MISHI (see notes)December 31, 2020December 31, 2019
  Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
        
MISHIProven522.54,20081.9500
 Probable503.45,5001082.910,000
 Proven + Probable1023.09,7001162.810,500
        

 

MINERAL RESOURCES
(Exclusive of Mineral Reserves)
(see notes)
December 31, 2020December 31, 2019
  Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
        
EAGLE RIVERMeasured2312.19,0002510.18,000
 Indicated3209.093,0003559.0103,000
 Measured + Indicated3439.2102,0003809.0111,000
 Inferred51012.5205,00040312.3159,000
        
   
MINERAL RESOURCES (Exclusive of Mineral Reserves) (see notes)December 31, 2020December 31, 2019
  Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
Tonnes
(000s)
Grade
(g/t Au)
Contained
ounces
        
MISHI       
Open pitIndicated------
 Inferred2,8081.6147,0002,8081.6147,000
UndergroundIndicated------
 Inferred3735.465,0003735.465,000
MISHI TOTALIndicated------
 Inferred3,1822.1212,0003,1822.1212,000
        
        

EAGLE RIVER PROVEN AND PROBABLE RESERVE BREAKDOWN BY ZONE1

The following table provides a breakdown of Mineral Reserves and Resources at Eagle River by structure to illustrate the growing significance of these recent developments.

 December 31, 2020December 31, 2019
ZoneTonnes
(000s)
Grade
(g/t Au)
Contained
Ounces
PercentTonnes
(000s)
Grade
(g/t Au)
Contained
Ounces
Percent
         
No. 30075614.9362,0006279815.5397,00072
No. 739412.6160,0002826712.9110,50020
No. 811110.738,000710311.638,5007
Other917.221,0003186.94,0001
TOTAL1,35213.4581,0001001,18614.4550,000100
         
  1. Reported at 5.43 g/t Au cut off at the Eagle River Mine.
  2. Numbers reflect rounding to nearest 1,000 tonnes and ounces.
  3. Mineral Resources are exclusive of reserves.
  4. Mineral Resources are not in the current mine plan and therefore do not have demonstrated economic viability.
  5. All Mineral Reserves and Mineral Resources estimates have been made in accordance with the Standards of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) and NI 43-101 and assume a gold price of $2,047 (US$1,599) per ounce for the reserves and a gold price of $2,191 (US$1,712) per ounce for the resources, with a $1 USD → CAD exchange rate of $1.28).
  6. Mineral Resources are reported in-situ with no dilution provision.
  7. A density or tonnage factor of 2.7 tonnes per cubic m (t/m3) is applied at both Eagle River Mine and Mishi Mine.
  8. At Eagle River Mine, all high assays are cut to either 60.0 – 140.0 g/t Au for individual zones.
  9. All Mineral Reserves at Eagle River employ a 1.5 m minimum width, a 3.0 g/t Au minimum grade for continuity and include 1.0 m of external dilution and 10% lost ore and metallurgical recoveries of 97.0%.
  10. At Mishi the 7 lenses considered in the Mineral Resource calculations are cut between 6.0 to 45.0 g/t Au. All high blasthole assays are cut to 10 g/t Au.
  11. All In-Pit Mineral Reserves at Mishi employ a 1.0 g/t cut-off grade and a 3.0 m minimum width. Estimates provide for 10% dilution, 10% lost ore and metallurgical recoveries of 83%.
  12. Mishi Mineral Reserves currently have a life of mine stripping ratio of 13.0 tonnes of waste per tonne of ore.
  13. Mishi In-Pit Mineral Resources extend to a depth of 110.0 m, employing a 0.5 g/t cut-off grade, a 3.0 m minimum width and are reported in-situ with no dilution or lost ore provisions.
  14. Mishi Underground Mineral Resources are reported in-situ employing a 3.0 g/t cut-off grade and a 1.5 m minimum mining width.
  15. Qualified Persons for the Mineral Reserves and Mineral Resources estimates as per NI 43-101 include Marc-André Pelletier P. Eng, COO, and Michael Michaud, P.Geo., VP Exploration of Wesdome.

EXPLORATION HIGHLIGHTS


Production and Exploration Highlights
Achievements
Eagle River
  • Ongoing extension and definition drilling of the 300 East Zone has continued to return high grade gold intersections. The 300 East Zone, previously defined from the 750 m-level to 1,000 m-level, has now been extended to the 1,400 m-level. The down plunge extension is a relatively more tabular zone that now measures in excess of 100 metres along strike with above average widths and grades, and remains open down plunge.
  • In addition, limited drilling has intersected a new zone of mineralization approximately 40 m north and in the hanging wall of the high grade 300 East zone. Hole 925-E-172 returned 43.1 g/t Au (29.0 g/t Au capped) over 1.5 m true width. This zone remains open down plunge and along strike and highlights the potential of finding additional sub-parallel zones in this area and will remain a priority throughout 2021.
  • The Company is continuing to develop and explore the 311 West Zone along the western margin of the mine diorite. The zone has transitioned from the diorite into the adjacent mafic volcanics, again highlighting the potential of the volcanic rocks to host gold mineralization, similar to that observed at the neighbouring Falcon 7 zone. The 311 West Zone remains open up plunge and along strike to the west within the mafic volcanics, and will be a focus of 2021 drilling.
    • Total metres drilled in 2021 are budgeted to range between 164,000 and 174,000 m for five underground and three surface drill rigs, including underground exploration of 60,000 – 70,000 m, underground definition drilling of 50,000m, and surface exploration drilling 54,000 m.
    • The Company was able to replace the depletion of 2020 mined reserves and add 5% more mineral reserves. Current mineral reserves at Eagle River Complex as of December 31, 2020 are 591,000 ounces of gold from 1.5 Mt at an overall grade of 12.6 g/t Au; as compared to the mineral reserves as of December 31, 2019 of 1.3 Mt at a grade of 13.4 g/t Au containing 560,000 ounces of gold.
Kiena
  • Over the past year, underground drilling was focused on definition drilling of the A Zone, which increased the Kiena Deep A Zones Indicated Resources by 77% from 405,100 ounces to 717,400 ounces of gold since 2019, at a similar cut-off grade of 3.0 g/t Au., (see press release dated December 15, 2020). Drilling has since refocused on expansion drilling, not only at the A Zone and VC Zone, but at other prospective targets within the mine area. As part of this exploration focus, initial drilling has already successfully expanded the size of known mineralized zones, with follow-up drilling expected to contribute to future resource updates.
  • Drilling of the VC1 zone has continued to return a number of high grade intersections and has now confirmed the previous interpretation that the VC1 zone is a separate structure having a different orientation than the A Zone. The mineralization of the VC1 zone has transitioned from a more sulphide-rich variety found in the upper extents of the mine, to a quartz-rich environment with visible gold present at depth. The VC1 zone extends 475 m down plunge from 67 Level to 107 Level, where development and drilling are presently being completed.   The VC1 zone remains open at depth and will be a focus for ongoing drilling.
  • Initial sill development was completed on the Kiena Deep A Zone on 111 Level. The development has confirmed the continuity of the A Zone high grade gold mineralization along strike. Visible gold is associated with folded quartz veins which are located within an overall zone of strong amphibole alteration. The mill was restarted to process the A zone bulk sample in December, of which a total of 1,500 ounces of gold have been sold. More gold from the mill circuit clean-up has been recovered and will be refined later in Q1, followed by the final reconciliation of the bulk sample, once all the information is available. The Kiena infrastructure has been well-maintained, and will enable a quick restart once a production decision is made.
  • The Pre-Feasibility Study (“PFS”) is progressing well, and it is expected to be completed in Q2, with a scheduled re-start decision shortly thereafter. The pre-production timeframe is forecast to be less than six months, potentially driving the Kiena Mine into commercial production in Q4 of this year.
  • The 2021 exploration program at Kiena consists of 65,000 m of underground drilling and 42,000 m of surface drilling

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Marc-André Pelletier, P. Eng, Chief Operating Officer, and Michael Michaud, P.Geo., Vice President, Exploration of the Company and each a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “SEC”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all, of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

Wesdome Gold Mines 2020 Fourth Quarter and Full Year Financial Results Conference Call: March 11, 2021 at 10:00 am ET

North American Toll Free: + 1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Conference ID:  6284876

Webcast link: https://edge.media-server.com/mmc/p/a8c7w7dc

ABOUT WESDOME
Wesdome Gold Mines is in its 30th year of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Quebec. The Kiena Complex is a fully permitted former mine with a 930 metre shaft and 2,000 tonne per day mill. The Company is in the process of divesting of its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario, which is being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 139.4 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO.”

For further information, please contact:

Duncan MiddlemissorLindsay Carpenter Dunlop
President and CEO VP Investor Relations
416-360-3743   ext. 2029 416-360-3743   ext. 2025
duncan.middlemiss@wesdome.com lindsay.dunlop@wesdome.com
   
   
220 Bay Street, Suite 1200  
Toronto, ON, M5J 2W4  
Toll Free: 1-866-4-WDO-TSX  
Phone: 416-360-3743, Fax: 416-360-7620  
Website: www.wesdome.com  

This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company has included in this news release certain non-IFRS performance measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per ounce reflect actual mine operating costs incurred during the fiscal period divided by the number of ounces produced. These measures are not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company\'s performance and ability to generate cash flow

Wesdome Gold Mines Ltd.
Summarized Operating and Financial Data
(Unaudited, expressed in thousands of Canadian dollars, except per share and per unit amounts and otherwise indicated)

  Three Months EndedYears Ended 
  December 31, December 31, 
  2020  2019  2020 2019 
Operating data         
Milling (tonnes)         
Eagle River 53,551  23,257  196,441 122,405 
Mishi 3,555  9,108  39,856 46,405 
Throughput 2 57,106  32,365  236,297 168,809 
Head grades (g/t)         
Eagle River 11.7  28.6  14.2 23.1 
Mishi 3.5  1.9  2.7 2.5 
Recovery (%)         
Eagle River 98.0  97.6  97.7 97.3 
Mishi 84.5  77.1  77.8 82.4 
Production (ounces)         
Eagle River 19,667  20,894  87,560 88,617 
Mishi 339  438  2,718 3,072 
Total gold produced 2 20,006  21,332  90,278 91,688 
Total gold sales (ounces) 19,889  22,100  91,229 88,423 
          
Eagle River Complex (per ounce of gold sold) 1       
Average realized price$2,430 $1,954 $2,360$1,853 
Cash costs 1,162  786  1,053 825 
Cash margin$1,268 $1,168 $1,307$1,028 
All-in Sustaining Costs 1$1,567 $1,305 $1,396$1,293 
          
Mine operating costs/tonne milled 1$400 $470 $389$424 
          
Average 1 USD → CAD exchange rate 1.3030  1.3200  1.3415 1.3269 
          
Cash costs per ounce of gold sold (US$) 1$892 $595 $785$621 
All-in Sustaining Costs (US$) 1$1,203 $988 $1,040$975 
          
Financial Data         
Mine profit 1$25,211 $25,816 $119,250$90,900 
Net income$8,491 $12,077 $50,715$40,945 
Net income adjusted 1$8,491 $12,077 $50,715$38,576 
Earnings before interest, taxes, depreciation and amortization 1$18,017 $23,276 $102,342$80,722 
Operating cash flow$12,893 $15,907 $102,292$71,163 
Free cash flow$(8,813)$(3,211)$29,009$6,714 
Per share data         
Net income$0.06 $0.09 $0.36$0.30 
Adjusted net income 1$0.06 $0.09 $0.36$0.28 
Operating cash flow 1$0.09 $0.12 $0.74$0.52 
Free cash flow 1$(0.06)$(0.02)$0.21$0.05 
          

Notes

  1. Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
  2. Totals for tonnage and gold ounces information may not add due to rounding.


Wesdome Gold Mines Ltd.

Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars)

   As at December 31, 2020 As at December 31, 2019 
Assets      
Current      
  Cash and cash equivalents  $ 63,480 $35,657 
  Receivables and prepaids   4,243  1,996 
  Sales tax receivable   4,731  3,344 
  Inventories   12,451  19,667 
Total current assets   84,905  60,664 
       
Restricted cash   657  657 
Deferred financing cost   827  988 
Mineral properties, plant and equipment   128,670  116,765 
Exploration properties   143,524  106,644 
Total assets  $ 358,583 $285,718 
       
Liabilities       
Current      
  Borrowings  $ - $3,636 
  Payables and accruals   21,123  19,219 
  Income and mining tax payable   3,481  1,419 
  Current portion of lease liabilities   5,901  3,781 
Total current liabilities   30,505  28,055 
       
Lease liabilities   5,604  5,889 
Deferred income and mining tax liabilities   37,354  23,829 
Decommissioning provisions   22,270  21,443 
Total liabilities   95,733  79,216 
       
Equity      
Equity attributable to owners of the Company      
  Capital stock   179,540  174,789 
  Contributed surplus   6,472  5,590 
  Retained earnings   76,838  26,123 
Total equity attributable to owners of the Company   262,850  206,502 
       
   $ 358,583 $285,718 



Wesdome Gold Mines Ltd.

Consolidated Statements of Income (loss) and Comprehensive Income (loss)
(Expressed in thousands of Canadian dollars except for per share amounts)

   Three Months Ended Years Ended 
   December 31 December 31 
    2020   2019   2020   2019  
           
Revenues  $ 48,362  $43,223  $ 215,466  $163,974  
Cost of sales   (30,483)  (22,804)  (125,386)  (94,806) 
Gross profit   17,879   20,419   90,080   69,168  
           
Other expenses          
Corporate and general   2,231   1,745   7,378   6,668  
Stock-based compensation   524   346   2,786   2,987  
Write-down of exploration properties   2,034   -   2,034   -  
Write-down of mining equipment   427   247   427   247  
    5,216   2,338   12,625   9,902  
           
Operating income    12,663   18,081   77,455   59,266  
           
Quebec exploration credits refund   -   -   -   2,867  
Interest expense   (294)  (315)  (1,096)  (679) 
Accretion of decommissioning provisions   (89)  (71)  (354)  (372) 
Interest and other income   (902)  (131)  (1,105)  351  
Income before income and mining taxes   11,378   17,564   74,900   61,433  
           
Income and mining tax expense          
  Current   4,426   1,440   10,660   4,918  
  Deferred   (1,539)  4,047   13,525   15,570  
    2,887   5,487   24,185   20,488  
           
Net income and total          
  comprehensive income  $ 8,491  $12,077  $ 50,715  $40,945  
           
Earnings per share          
  Basic  $ 0.06  $0.09  $ 0.36  $0.30  
  Diluted  $ 0.06  $0.09  $ 0.36  $0.29  
           
Weighted average number of common          
  shares (000s)          
  Basic   139,482   137,867   139,045   136,931  
  Diluted   142,874   141,670   142,569   140,550  
           



Wesdome Gold Mines Ltd.

Consolidated Statements of Total Equity
(Expressed in thousands of Canadian dollars)

       Retained   
   Capital Contributed Earnings/ Total 
   Stock Surplus (Deficit) Equity 
           
Balance, December 31, 2018  $166,387 $5,777  $(14,955) $157,209 
Net income for the year ended          
  December 31, 2019   -  -   40,945   40,945 
Exercise of options   5,361  -   -   5,361 
Value attributed to options exercised   2,613  (2,613)  -   - 
Value attributed to options expired   -  (133)  133   - 
Value attributed to DSUs redeemed   175  (175)  -   - 
Value attributed to RSUs exercised   253  (253)  -   - 
Stock-based compensation   -  2,987   -   2,987 
           
Balance, December 31, 2019  $174,789 $5,590  $26,123  $206,502 
           
Net income for the year ended          
  December 31, 2020   -  -   50,715   50,715 
Exercise of options   2,847  -   -   2,847 
Value attributed to options exercised   1,327  (1,327)  -   - 
Value attributed to RSUs exercised   577  (577)  -   - 
Stock-based compensation   -  2,786   -   2,786 
Balance, December 31, 2020  $ 179,540 $ 6,472  $ 76,838  $ 262,850 
           



Wesdome Gold Mines Ltd.

Consolidated Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)

   Three Months Ended  Years Ended
   December 31 December 31
    2020   2019   2020   2019 
          
Operating Activities         
  Net income   8,491   12,077   50,715   40,945 
  Depreciation and depletion   6,345   5,397   26,346   21,732 
  Stock-based compensation   524   346   2,786   2,987 
  Accretion of decommissioning provisions   89   71   354   372 
  Deferred income and mining tax expense   (1,539)  4,047   13,525   15,570 
  Amortizstion of deferred financing cost   111   86   370   86 
  Interest expense   294   325   1,096   703 
  Write-down of mining equipment and exploration properties  2,461   247   2,461   247 
  Loss on disposal of equipment   -   52   -   52 
Foreign exchange loss on lease financing   (140)  -   (36)  - 
    16,636   22,648   97,617   82,694 
  Net changes in non-cash working capital   (35)  (5,271)  13,272   (7,851)
  Mining and income tax paid   (3,708)  (1,470)  (8,597)  (3,680)
Net cash from operating activities   12,893   15,907   102,292   71,163 
          
Financing Activities         
  Exercise of options   442   1,716   2,847   5,361 
  Debt issue less of deferred cost   -   (742)  (209)  2,562 
  Repayment of borrowings   -   -   (3,636)  - 
  Repayment of lease liabilities   (1,316)  (901)  (4,847)  (5,030)
  Termination of lease arrangements   -   -   -   (3,952)
  Interest paid   (294)  (312)  (1,096)  (676)
Net cash used in financing activities   (1,168)  (239)  (6,941)  (1,735)
          
Investing Activities         
  Additions to mining properties   (8,984)  (9,905)  (27,956)  (33,542)
  Additions to exploration properties   (11,406)  (8,312)  (40,480)  (25,220)
  Funds held against standby letter of credit   -   -   -   (657)
  Net changes in non-cash working capital   (1,367)  (405)  908   (1,730)
Net cash used in investing activities   (21,757)  (18,622)  (67,528)  (61,149)
          
Increase (decrease) in cash and cash equivalents  (10,033)  (2,954)  27,823   8,279 
Cash and cash equivalents - beginning of year   73,513   38,611   35,657   27,378 
Cash and cash equivalents - end of year   63,480   35,657   63,480   35,657 
          
Cash and cash equivalents consist of:         
  Cash  $ 63,480  $35,657  $ 63,480  $35,657 
   $ 63,480  $35,657  $ 63,480  $35,657 
          

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